Karachi: The Pakistan Credit Rating Agency (PACRA) has elevated the entity ratings of the Pakistan National Shipping Corporation (PNSC), recognizing its status as the national flag carrier and its integral role in maintaining the nation’s seaborne energy and commodity supply chains. The improved rating, now set at AA, underscores PNSC’s strategic importance, state ownership, and enhanced autonomy in fleet procurement.

A significant development contributing to the upgraded rating is PNSC’s newfound independence in acquiring vessels. The Cabinet Committee on State-Owned Enterprises, followed by the Federal Cabinet, granted the corporation an exemption under Section 17(2) of the SOE Act, 2023. This policy streamlines the acquisition process, particularly for second-hand vessels, promoting quicker decision-making and adherence to internal protocols.

The corporation’s operational strategy includes phasing out older ships in favor of expanding and modernizing its fleet, focusing on both newbuild and second-hand opportunities. This approach aims to optimize costs and boost long-term operational efficiency and value. The strengthened rating reflects confidence in PNSC’s management team, governance framework, and robust equity base, all contributing to enhanced operational capacity and sustainability.

During the fiscal year 2025, PNSC transported approximately 11.037 million tonnes of cargo, an increase from 9.94 million tonnes the previous year, while posting a consolidated profit of Rs. 20,448 million. The corporation’s operational performance was shaped by vessel disposals and freight rate fluctuations. Following the sale of MT Lahore and MT Quetta, the current fleet includes 10 vessels, with chartered vessels deployed to meet contractual obligations.

Looking ahead, PNSC’s fleet expansion plans include acquiring three second-hand tankers by January 2026, financed through a debt-equity structure. Additionally, tenders for twelve more vessels are underway. The corporation’s agile procurement strategy and focus on fleet efficiency aim to bolster operations and sustainability, despite the high capital needs potentially impacting financial metrics.

Future ratings will depend on the timely execution of the fleet expansion plan and maintaining a balanced financial profile. While early-stage profitability may experience challenges, the long-term outlook remains positive, with expectations of strengthened financial and operational profiles, improved fleet age, and new revenue opportunities.